Sugar prices continue to sweeten RGF profits

RECORD sugar prices continue to bolster the fortunes of Liverpool food ingredients group The Real Good Food Company.

The company owns Napier Brown, which it claims is the largest independent non-refining distributor of sugar in Europe. It also supplies bakery ingredients through its Renshaw business, and manufactures patisserie and desserts through its Haydens Bakery.

In a trading update it said the high sugar prices should “transform the dynamics of Napier Brown”.

Overall the group expects full-year earnings for the year to December 31 to be in line with market forecasts.

The business traded well during the pre-Christmas period and was not affected by the severe weather. It said the Renshaw business grew exports and enjoyed its best performance in 2010.

The planned expansion of the Haydens Bakery business into a new distribution centre is well advanced, and the business also had a good pre-Christmas trading period. Real Good Food ended the year with bank borrowings reduced to just under £20m, lower than market forecasts.  
 
Chairman Pieter Totté said: “I am very pleased at the significant progress we have made over the past 12 months and the efforts made by our management team to realise the group’s full potential. We have three exciting businesses, each with prospects for continued further progress in the current year, and a significantly reduced level of bank borrowings. I look forward to reporting further on our progress over the coming months.”